Co-Diagnostics Must Face Investor Suit on Covid Test Accuracy

Co-Diagnostics Inc. lost its bid to throw out a securities suit after a federal judge in Utah ruled investors sufficiently alleged the company falsely claimed to offer “100% accurate” coronavirus tests early in the pandemic.

The Salt Lake City-based diagnostic testing company’s investors allege facts showing Co-Diagnostics’ “statements attempted to paint a picture of a product for which everything was going right” when the company “knew of evidence otherwise,” the U.S. District Court for the District of Utah said.

The investors argue the company’s statements were “actually false,” but a Co-Diagnostics “press release appears carefully calibrated to assert that ...